to all our viewers back home in the united states. i want to wish all of you a very, very happy thanksgiving. aaron burnett "out front" starts right now. out front next. cease-fire in the middle east. after seven days of deadly attacks between israel and gaza, and, yet, more rocket fire tonight. hillary clinton calls it a critical moment for the region. everyone wants to know the same thing. will it last? we have top officials from both sides "out front" tonight. and speaker of the house john boehner put obama care on the table. he says if we're serious about getting our financial house in order, obama care has to go. is he crazy? or crazy like a fox? let's go "out front." good evening, everyone. i'm aaron burnett. and "out front" tonight,

cease-fire. 142 people were killed in gaz why and five in israel, egypt helped negotiate a temporary truce which took he fleeffect a at night in tel aviv. it was met with gunfire in the streets of gaza city. it is fragile. israeli defense forces say there are five rockets launched from gaza since the cease-fire went into effect. and prime minister benjamin netanyahu's statement was cautious. he said he was willing to give the egyptian cease-fire a chance before there is a need to use greater force. not exactly a ringing endorsement. here's the key thing, while the united states got involved with a visit from hillary clinton this deal was not brokered by the usa. >> this is a critical moment for the region. egypt's new government is assuming the responsibility and leadership that has long made this country a corner stone of regional stability and peace. >> seemingly unexpected leader

was egypt's mohamed morsi, a man we've seen at rallies where egyptians chan egyptians chanted we are hamas. it's an impressive feat and the first time that israel has ever negotiated with an islamist government. but there are some shady things about the deal. according to an israeli newspaper, neither side officially signed penned to paper on the cease-fire agreement which raise sometimes questions about it. and here's what we know is in the verbal deal. israel has agreed to hold its fire and end attacks against top militants and this is important, promise to look at ways to ease its blockade of the gaza border. hamas agreed not to strike any israeli targets and agreed there is no passage of weapons into gaza and to insure other palestinian groups in the gaza strip stop their attacks. if you're shaking your head that some of these things are very tall order, well, you're right. later "out front" we have the key players, israel's foreign

deputy minister and leerd of the plo to the united states. they will be our guests and answer those questions. but cnn's ben wheatamen is live with the latest from there. describe the situation. it was amazing to watch it today leading up to the scease-fire. it's not like it went off quietly in the night, was it? >> reporter: no, in the hour and a half between the time the announcement was made in cairo and the cease-fire went into effect, we saw increasing numbers of israeli air strikes, artillery barrages into gaza city itself. some of them quite close to where i'm standing. and we saw three separate volley of rockets fired from gaza city toward israel. it did seem as if they were working against the clock to get just a few last whips in or hits in to the other side before the cease-fire went into effect. when it did go into effect, it

became very calm, very quiet. then we started to hear celebratory gunfire coming from a bit of the distance from here. but it came closer and closer and we saw more and more cars out on the street. more than we've seen now for the last eight days for quite some time. there were very few cars out. definitely after dark, hardly any. but it went very quickly from pretty quiet to very noisy here in gaza city. >> can you talk about celebratory, some people celebrating that it's over and they could live their lives and they weren't afraid. others possibly celebrating they thought they scored some sort of a victory. what was the celebration more about? >> well, it was partly victory. i was here at the end of operation cast led in 2008-2009. and when finally the guns stopped firing and the air strikes came to an end, people came out and they were shell

shocked. they literally were shell shocked. more than 1,400 people were killed in gaza. and people were just walking around looking in utter amazement and shock at the amount of destruction that happened. this time around, gaza was spared an israeli ground incursion. the death toll was only about a tenth of what it was during the last operation four years ago. the feeling is they survived. they got some concessions out of israel. and now they can get on with their lives and tonight probably gets some sleep. erin? >> all right, ben, thank you very much. ben is talking about the reaction in gaza. the entire cease-fire was in jeopardy earlier today. during the final negotiations a bomb exploded on a bus in the heart of tel aviv. 24 people were injured. that is where sarah sidener is tonight. what is the reaction from the israeli people? ben talking about what is happening in gaza. but what about in israel? >> reporter: there was a lot of

concern and frustration and worry and real fear off that bus exploded around noon. it happened very close to the military headquarters as well. we're talking about injuring nearly two dozen people, five of whom are in the hospital. police very close to making arrests on that. but the reaction after that in that same area as you might imagine, you have two different reactions, one, some people are saying, look, we think that prime minister of israel should finish off the job. that they should go in and take care of this so that this doesn't ever have to happen again where they're seeing rockets come over or bomb blasts in a city like tel aviv or any city in israel. but then you had other people who are very concerned about the ground war. did not want to see a ground war happen. didn't think there should be some sort of permanent solution by any means necessary. but ultimately every single person that we had a chat with and who came up to us and wanted to talk about it wanted a

permanent solution to this problem, to this crisis, to this fight, if you will. between gaza and israel. and including all of the militant groups inside of gaza not just hamas itself. it will take all of them to stop the rocket fire from coming over and the subsequent air strikes that israel does after it is hit. >> all right, sarah, thank you very much. a permanent solution so hard to envision how that could happen. tens of thousands of israelis were called for duty for that possible ground war. fred plafrnken has been with th israeli forces. are they moving back from the border? >> reporter: erin, the troops are still at the border. we're not seeing the troops move away just yet. certainly we believe they're going to stay there for at least another four or five days because, of course, one of the things that the israelis are doing, especially in the next couple of hours, is they're going to be monitoring whether or not the cease-fire is actually being kept by hamas as

well. what we've seen so far is there is smaller violations. one or two rockets have been fired out of gaza. the israelis say by and large the cease-fire is still holding. if you talk to people here, a lot of them are skeptical whether or not the cease-fire will hold. a lot of them say they heard talks like this before. they think that hamas is actually still in place and, therefore, they fear that a couple months down the line or a couple of years down the line they might have rockets raining down on their heads as they have had the past couple of days. by and large, however, folks that we're talking to here on the streets say that at least for now they're quite happy that the violence has ended or seems to have ended and they hope that it might last for longer than the past couple of times which brought us, of course, to the situation before the on going military operation that was going on here when we saw the violence. they hope this time it will last. however, most of them are skeptical. erin? >> israel and gaza both claim the cease-fire as a victory. but there was a clear winner.

officials from both sides come "out front." plus, john boehner says if we want to avoid the fiscal cliff, obama care must go. and a judge says hostess, well, has to make a decision on whether twinkie dies forever. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. there's natural gas under my town. it's a game changer. ♪ it means cleaner, cheaper american-made energy.

but we've got to be careful how we get it. design the wells to be safe. thousands of jobs. use the most advanced technology to protect our water. billions in the economy. at chevron, if we can't do it right, we won't do it at all. we've got to think long term. we've got to think long term. ♪ ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. [ male announcer ] can a car be built around a state of mind? ♪

announcing the all-new 2013 malibu from chevrolet. ♪ with a remarkable new interior featuring the available chevrolet mylink infotainment system. this is where sophisticated styling begins. and where it ends? that's up to you. it's here -- the greatest malibu ever. ♪ anyone have occasional constipation, diarrhea, gas, bloating? yeah. one phillips' colon health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. approved! [ female announcer ] live the regular life. phillips'.

our second story "out front," boehner put obama care on the table. he is arguing that if the united states is serious about getting our fiscal house in order, the president's health care law has got to go. he wrote, "we can't afford it and we can't afford to leave it intact. that's why i've been clear that the law has to stay on the table." obviously referring to the negotiating table. yes, even though the president won re-election over contender who said he would repeal obama care on day one, baner er ir r boehner is like a dog with this bone. out front tonight, writer for the national review, political analyst role land martin and

david frum, former adviser to george w. bush. you think the election is over. there are a lot of things can you argue about. a lot of victories can you score. but getting rid of obama care is something tabled in the he leshgs, not put on the table. >> i think that's fair. there are two pieces to this debate. one thing that is a huge contradiction and problem for republicans is this. the thing that they campaigned on, get willing rid of the medicare savings in the obama care law, that's something that would actually make the deficit picture look a lot worse over the next ten years. that's obviously, you know, that cuts against this narrative. on the other nd, there are a lot of things about the obama care law that are going to be fiscal problems. for example, the law treats people who are on the exchanges really differently from it treats people who get insurance through the employers. so there are aot of those things that probably should be fixed but aren't going to yield big savings in the short term. as a matter of deficit negotiations, i think boehner is not on strong footing. >> interesting. there are a lot of problems with obama care. i think obama would be the first

person to acknowledge that. he didn't get a lot of things he wanted in there. but david frum, what is john boehner doing? what is he possibly trying to gain from this? >> okay, i'm going with your crazy luke a fox option. >> good. >> john baner is about to have to bring the more conservative part of his caucus, some very bad news. republicans don't have a wlost leverage. tax cuts expire whether without anybody doing anything. and republicans are going to end up yielding a lot more than they give -- than they get in the negotiations. and john boehner, as the chief negotiator is the man identified with that surrender. so he needs to put down a marker now that says to the right wheel of the caucus, hey, i'm with you. if it were up to me, 100%. i'm with you. and i am going to put it in writing. i'm completely in favor of doing all the things that would have happened if we won the election. however, we didn't win the election. and we have facing this fiscal cliff and it's scary.

so i'm about to have to do things you don't like. but be assured that my heart is in the right place. >> role laan what about this? they voted for obama. but when you look at how many people cnn poll last week, 51% of this country oppose the health care bill. 42% favor it. maybe boehner is on to something. >> no, he's not. because frankly we got to go look at those numbers. remember, there are significant number of people in this country who felt that the bill should have gone further. there are people -- again, simply not oppose and favor. you look at the number of the polls done, a lot of people said they want a single pair option. yeah, i don't favor this one. >> i want canada. >> i favor universal health care. let me be clear. let me channel the obama administration for a second. this is how they're responding to the proposal. next! it ain't going to happen. he can sit here and sing all day saying put it on the table.

trust me, it's not going to be on the table. so it's cute. it's an op-ed, it's great. but trust me, even he knows, the president is not going to put the affordle care act on the table and so it's not crazy like a fox. it's simply crazy. >> okay. >> what about the possibility though, i think this is a reality. to get a grand bargain that works, and i'm not a crazy person. i don't think we're getting one. >> so you claim. >> so i claim. my own self evaluation. but in order to actually get that done, we do have to make changes to health care. and i believe the president agrees with that. but we do. >> yeah. i think that's absolutely right. actually one of the tricky questions is going to be how the president is going to introduce some of these ideas about cost control that weren't part of that original debate. there is a lot of talk about administrative price controls, all pay rent setting, terms we haven't heard bandied about that will be talked about in the years to come. there is another big thing, setting up the exchanges is

really tough complicated stuff that's got to take a lot longer than people think. so this is going to be -- there's going to be a lot of issues that republicans are going to be able to pick and poke at and democrats have to think hard about. >> david frum , can john boehne get the guys and gals to come along? >> sure. in fact, i think something's going to happen. it's not a grand bargain. the whole fiscal cliff problem is completely artificial. is it utterly unnecessary self-inflicted trap that was in response to a dilemma the republicans kree a created for themselves in the summer of 2011. i think what we'll end up having to do is just get rid of the sequester. there's to reason for that. it's gone. good-bye. and the second thing that we then do is have a -- we extend the present tax rates for another six months. and then argue taxing and spedding without an artificial gun to our head.

there are enough scary things out there in the world that the united states congress does not need to invent some additional ones totally unnecessarily. >> all right. thanks to all three of you. >> quick final word, yeah? >> real simple. both sides are going to have some significant pain in this. you have to deal with the defense. you have to deal with medicare. you have to deal with entitlements. nobody's going to get off easy. but if republicans think can you balance it on the backs of the elderly and poor, trust me, that's where the fight is going to be. share the pain if you want to have the gain of being able to deal with the deficit. >> thanks to all three of you. appreciate it. one of the issues here, tax the rich or tax the wealthy? there is a difference. so we have what we think could be the real buffet rule, the one he put out there, the real one if we're actually serious here. even with a cease-fire, drones are still over gaza tonight. we're going to give you an exclusive look at the israeli company that's building the drones.

>> hi. >> you know, i can save you 15% today if you open up a charge card account with us. >> announcer: we all love a good deal during the holidays, especially identity thieves. they can open an account in your name and go on a serious spending spree. >> do you have cufflinks? >> mm-hmm. >> gold ones? >> announcer: not on our watch. we're lifelock, with the most comprehensive identity theft protection you can buy. go to lifelock.com or call 1-800-lifelock today. [whoosh] lifelock-- relentlessly protecting your identity. you see us, at the start of the day. on the company phone list that's a few names longer.

you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. we find the best, sweetest craforelobste that we can find. [ malennounc ] it'ti focrabfestt red lobster! his ar, y 1 of 5ntrees like our ne crab d garlic shri. half-pou otender crab pair with savory shrimp. st 12.99. odig into our hearty crab and roasted garlic seafood bake all with salad and unlimited cddar bay biscuit so much to choose from, so ittle time. so come into red lobster for abfest today and sea food differentlrom, so ittle time.

our third story, tax the rich. well, no, actually, a really big difference. tax the wealthy. think about it this way. if your income, what you earn going to work every day puts new

the top 2%, you know, maybe you're not wealthy. wealth is something you build over time. it shows itself in the form of super expensive assets, massive mansions, boats, art work, expensive wine, bentleys, things like. that we're 41 days from the fiscal cliff and washington is in bitter partisan deadlock, we want to test drive another idea, solve the problem. the wealthy pay more but tax rates on people who work might not go up right now. is this what the buffet rule really should have been? "out front" tonight is daniel altman. great to see you. what was amazing to me reading your proposal here that would tax the wealthy as opposed to just the rich, it's against the constitution right now to tax wealth in this country. >> right. you can't have a direct tax like that. in fact, we needed a constitutional embarrassment just to get the income tax back in 1913. that is the 16th amendment. we would need another amendment to get this wealth tax. it is 1 hun hu00 years later. >> i got another amendment i

want. i want to change the voting day. i'm all for it. let's put some amendments in. but let's break down your math. if we taxed wealth, right, what people accumulate over time. 2010 are the numbers you're looking at. $58 trillion in wealth. if you just put a 1.5% tax on that, $870 billion, that is a lot of money. i mean that's actually more than we got an income tax that year in this country. obviously, it's disproportionately going to affect the wealthy. seems close to a silver bullet. >> can you replace the income tax and the estate and gift tax. it's with a wealth tax of 1.5%. to me the most important issue is to deal with the wealth inequality in this country which is it much more severe than the income inequality in this country. it's getting worse. it's been getting worse for the last 20 years. and the only countries in the world that have let's say more than $10 million people in them where it's cloe close to how bad it is in this country are all in africa and latin america. >> so we're not necessarily talking about someone who works

really hard, an entrepreneur works really hard. you're talking about the people who initially are going to get, teresa heinz kerry, warren buffett, people who have massive amounts of money. they're hit the hardest, right? >> absolutely. the proposal i wrote had an exemption for households up to $500,000 in wealth that, is exempting 80% of american households right there. >> how did you draw that line? i can imagine there is all kinds of cheating that is going to happen around that line. or even on the bentley. people are going to say it has dents and not worth very much money. how do you avoid that? >> we have a lot of cheating right now with income tax. so we might to have a higher exemption. we might to have to have slightly higher rates. i think overall fighting wealth inequality is so important. it is really wealth, not income that, affects your access to opportunity and our wealth inequality is so extreme that it's hurting our living standards in the long run. >> and 500,000, that was an

arbitrary number. why did you pick that? >> well, like i said, it already exempts about 80% of american households. if you want to make a dent in inequality, you have to have a progressive tax system. >> thank you very much. really interesting idea. pleads, everyone, take to twitter. let us know what you think. we're trying to be pro active here in solve this problem. israel and gaza are claiming to day's cease-fire as a victory. do the claims add up? officials from both sides, the senior guys here are "out front" next. and hostess gets an answer to twinkie's death. oh no, not a migraine now.

try this... bayer? this isn't just a headache. trust me, this is new bayer migraine. [ male announcer ] it's the power of aspirin plus more in a triple action formula to relieve your tough migraines. new bayer migraine formula. in a triple action formula to relieve your tough migraines. (child screaming underwater)... (underwater noises).

time for citi price rewind. because your daughter really wants that pink castle thing. and you really don't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it finds one, you get refunded the difference. just use your citi card and register your purchase online. have a super sparkly day! ok. [ male announcer ] now all you need is a magic carriage. citi price rewind. buy now. save later.

we start the second half of our show with stories we care about where we focus on our reporting from the front lines. tonight at the united nations, ambassador susan rice addressed the controversy surrounding her response to the september 11th attack on the american consulate in benghazi, libya. this is the first time she's addressed it. here she is. >> i relied solely and squarely on the information provided to me by the intelligence community. i made clear that the information was preliminary. and that our investigations would give us the definitive answers. everyone, particularly the

intelligence community, has worked in good faith to provide the best assessment based on the information available. i have great respect for senator mccain and his service to our country. i always have. and i always will. i do think that some of the statements he made about me have been unfounded. but i look forward to having the opportunity at the appropriate time to discuss all of this with him. >> senator mccain, of course, has said that susan rice is not qualified to replace hillary clinton as secretary of state. and he said he would block her nomination. representative jesse jackson jr. resigned from congress saying he needs to spend more time on his health. he's been battling bipolar disorder and other things. in a letter to john boehner, jackson said his constituents deserve a full time legislator in washington, something i can not be for the foreseeable future. my health issues and treatment regimen is incompatible with service in the house of representatives. jackson is the subject of inveigations by the fbi aej

house ethics committee. a group of world powers say they want to resume negotiations with iran over the nuclear program as soon as possible. the last time what is called the p-5 plus one held talks with iran was in june. and this came after a report from the international atomic energy agency which just said iran is not cooperating with nuclear inspectors. they also said iran has completed the installations of centrifuge tez fuel enrichment plant, a plant that can enrichure and yum to 20% which is crucial. it's at that level that it becomes easier to convert it to a weapon. a judge has given a preliminary approval for hostess brands, the maker of twinkies to liquidate. hostess can now start the process of selling the bakeries, brands, and recipes. it will be the most valuable thing it has, everybody. the ceo told reporters after the hearing that they will move as quickly as possible to sole sell those brands. the sad part is 15 thoi thou of the company's 18,500 employees will likely lose their jobs in the next few days.

it has been 475 dpas since the united states lost its top credit rating. what are we doing to get it back? seems like we say it every week. mortgage rates another low. the average rate on a 30-year fixed 3.31%. as we said now for well over a year, interest rates are not the problem. and now our fourth story "out front." what's at stake for israel and hamas tonight as they move forward under a cease-fire? both sides say that they've come out on top. during this ftemperature p thi calm, netanyahu is warning everyone. >> we need to exhaust this opportunity to obtain a long-term cease-fire. >> long term cease-fire. so what really happened today? is the cease-fire for real?

and who does it benefit the most? we have the ambassador from the plo to the united states in just a moment with the palestinian viewpoint. first, israel's deputy foreign minister daniel ilan. thank you very much for taking the time. we really appreciate it. let me ask you the basic question. is this cease-fire for real? >> thank you, erin. good to be here with you. we hope so. since we have held fire, we received 12 rockets coming from gaza. we have restrained ourselves. and we hope that this is just a residual kind of shooting. durable, quiet is important as a first stage. secondly, we would very much like to see that there will be a regime of inspection installed so hamas will not be able to rearm itself. and for the long run, hamas can become a legitimate interarbitor only if it receives the

expectations indeed the conditions of the international community as it was reflected by the quartet. that is they have to stop altogether terrorism. they have to recognize israel's right to exist and abide by former agreements. if this is the case, then we are on a very auspicious roll. >> it's a tall order. the prime minister's statement, we just heard him speak there, but his statement itself was not a ringing endorsement. it was open ended. it said he would gift egyptian cease-fire proposal "a chance" and then continue to say, i'll quote him, "before there is a need to use greater force." i mean it's purposeful that israel wants to feel the threat there? our reporters are saying obviously that there has been no withdrawal of idf forces from the border either. >> right. you know, we have to be very careful. it is not secret that we are preparing and we're still prepared for a land operation ground troops to really approve

all of the terrorists. and we hope we'll not need to use them. but the next few hours will tell a lot. if we see that hamas indeed bidbid abides by the cease-fire, there is no reason to go in. >> let me ask you the terms of the cease-fire. something i read in a newspaper today. the deal was not physically signed. there was no pen to paper. there was no physical deal. why not? >> well, first of all, you know, we do not talk to hamas. hamas is avowed on the destruction of the state of israel, indeed the entire jewish people don't take it from me. just read their chargers and all their inputs in their web sites. they are considered as a terror organization. >> but egypt brokered it, right? they could have both sides sign through egypt, right? >> you see, the u.s. europeans,

question not deal with hamas because by law they are a terrorist organization. like you wouldn't deal with al qaeda. the egyptians, yes, they have special relations with them. i think the egyptian involvement was very valuable. i think the leadership that was xer s exercised by president obama and hillary clinton was tremendous. and the formalities are of less consequences than the intentions and indeed the dealing on the ground. >> i understand that. but it also seems that formalities, especially on this issue that is so intractable, they -- they're more than formalities. that is a sign of something so much deeper. which brings me to egypt. you negotiated now using egypt as an interimmediate airy. they're an islamist government. their president appeared at rallies where they talk about jerusalem as the capital of the arabs, there are chants we are all hamas. as you said, he stepped up and

played a pro active role here. are you setting a precedent where you're going to have to talk to hamas? >> well, again, we will be very happy to talk to hamas. we have been ready to talk to hamas since they took over gaza, actually in a coup against the plo. but first, they will have to recognize our right to exist. secondly, they have to renounce terrorism. if this is the case, then they are legitimate -- as the plo was before they refused to recognize israel. it was recognized as a terror organization. they changed. maybe we have a precedent here that hamas can change as well. it's certainly within the interest of hamas and people of gaz why and the palestinian people in the region that they will change their ways. >> right. the turkish foreign minister visited gaza yesterday. i'm sure you're aware of. this the video went viral. he broke down after meeting a palestinian father who's son was killed in an air strike by israel. he condemned the attack.

demanded israel stop immediately. jordan, another country that recognizes you condemned at tack saying they were in violation of international and humanitarian law and a stark violation of the freedom of worship. i'm quoting them. when you see that from the two of the three countries that recognize you, it seems fair to ask whether you think hamas actually gained ground in the region in this conflict. >> well, erin, it's -- i would say that for us and i think for any democratically elected government, the priority is first of all keep your people safe. you know, we've had four million israelis under fire, especially one million over southern -- the southern part of israel where children could not really sleep at night. could not go to school safely. we've had also our casualties, six israelis killed. many, many injured and, of course, all the psychological damage, all this traumatic experience for many. so i think that it will be useful for leaders in the region to look at both sides and also to see who starts the whole war

here. who is the interest to do it? and we have to remember, hamas is still very much is being backed by iran, by hezbollah, by assad of syria, all the murderers and very evil forces in the region that support hamas. it's not their interest of the countries in the region to support hamas. terrorism can spill over. we saw it in egypt. how 16 egyptian soldiers were murdered because of the spillover of terrorism from gaza, ham as. >> all right. thank you very much for coming on and talking about the israeli side of this. we appreciate your time. i want now to get to the other side of the conflict and bring in the chief representative of the general delegation of the palestine liberation organization to the united states. good to talk to you, ambassador and to talk to you again. >> thank you. >> the other day when you were on this program before the cease-fire and i asked you whether you supported hamas, you said when it comes to our differences with hamas we have differences practically. this is normal. but what is happening in the

gaza strip, a direct attack on innocent civilians, we're witnessing a deliberate escalation on the part of the israelis to cause as much possible civilian deaths." given that, do you think the cease-fire will last? >> well, we hope that it will last. but it was interesting listening to the deputy foreign minister who today stirred controversy by making a statement with a raid yes station in new york, wnyc in which he said that all the civilians who were killed in the gaza strip deserved it. he said that in a show called "the take away." you listen to them about the psychological impact of the children in southern israel who could not sleep or go to school while forgetting at the same time that one-third of the civilian casualties in the gaza strip were children. so, of course we are pleased that egypt and other countries

managed to reach this cease-fire. but this not the solution to the problem, erin. >> people in gaza were celebrating in the streets after the cease-fire. our reporter was describing that just a few moments ago. why do they think this is a win? just on a purely practical level, people died. children died. and the only thing you can really see has changed here is they have fewer rockets than they did eight days ago. >> well, i think many people are happy that it is over. i am not sure they were in the streets to celebrate the "win or victory." they consider what happened last week and the way that people of gaza sustained, endured this brutal military campaign by the largest military in the muddidd east. so a lot of them are celebrating the fact that the war was over. >> but what happens from here? i mean that's -- i don't really understand. you say -- it doesn't really

seem anybody won. nothing has changed. hamas still says israel doesn't have a right to exist. israel still says -- i mean nothing's changed. >> you know, israel has always used the excuse other factions or palestinian organizations not recognizing them. and the plo did recognize israel in 1993. and we even deleted clauses in our chart that called for the destruction of is niz 1996 and 1998. 20 years after we signed peace treaty with israel, recognized israel as a right to exist, israel still occupied palestinian lands, occupied the palestinian people and still determined not to allow the people to decide their own future. so we are getting confused here. israel is attacking those who are allegedly attacking them with rockets and missiles and attacking the other camp who want to make peace with them and want to sit down to resolve the conflict. i don't think israel is serious about making peace with the palestinians. they want to preserve the status

quo and keep their occupation of the palestinians forever. >> let's talk about that bombing then in tel aviv today. you know, when the leader of hamas was asked about it, not only did he not talk about whether hamas was responsible, he actually praised the bombing. >> well, i can not speak on behalf of hamas. i didn't hear that particular leader. but our position on violence and counter violence is clear. the plo does not condone the killing of civilians, be it israelis or palestinians. if you look at the last week of this confrontation, you know very well that 140 palestinians have been killed. 1,000 were wounded. it's very clear who paid the heavier price in this confrontation. >> all right. so let's talk about the conditions of the cease-fire. one of them in terms of the weapons. one of the terms was there is no passage of weapons into gaza. this is obviously significant. one bus alone last year 50 tons of weapons were found being smuggled into the gaza strip.

there were mortar shells, anti-missiles, ammunition, assault rifles. is there any way hamas is going to stop smuggling weapons? that one seems to hard to believe. >> the only way to do that is to, one, end the blockade against the gaza strip confining 1.7 million people under a total israeli siege. you keep hearing officers say we pulled out our troops. we pulled out our settlers in 2005. technically, the ga yaz strip is still under israeli military operation. two, israel needs to deal with the issue politically. as long as there is an israeli military occupation of palestine and the palestinian people, there will be no peace and security for anybody in the region. so the best way to prevent tension, to prevent hostilities is by ending this conflict once and forral, allowing the palestinians to establish their independence, live side by side with all their neighbors. >> all right. thank you very much ambassador arikot. thank you for your time again. despite the cease-fire,

israeli drones are crisscrossing the skies over gaza. we're going to take you on a behind-the-scenes look that the company that built these. nnch in congo, military plans to liberate the country. that could be bad for freedom. let's say you want to get ahead in your career. how do you get from here... to here? at university of phoenix we're moving career planning forward so you can start figuring that out sooner. ln fact, by thinking about where

want your education to lead, while you're still in school, you might find the best route... leads somewhere you weren't even looking. let's get to work. or that printing in color had to cost a fortune. nobody said an all-in-one had to be bulky. or that you had to print from your desk. at least, nobody said it to us. introducing the business smart inkjet all-in-one series from brother. easy to use. it's the ultimate combination of speed, small size, and low-cost printing. ♪ how advanced is the new ford fusion? well...it has outstanding performance and handling... ...and it offers a plug-in hybrid

that gets a projected 100 mpge. of course, there's still one thing it can't do. introducing the entirely new ford fusion. it's an entirely new idea of what a car can be. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.

a new way to save on your prescriptions. it's the aarp medicarerx saver plus plan from unitedhealthcare. with this plan, you can get copays as low as a dollar through a preferred network pharmacy like walgreens -- where you'll find 8,000 convenient locations. best of all, this plan has the lowest part d premium in the united states -- only $15 a month. open enrollment ends december 7th. so call today or visit your local walgreens.

we are back to our outer circle where we reach out to tonight we go to the congo where a rebel group now says it plan to liberate the entire country. they say they want to push onto the capital of the drc. earlier i asked david mckenzie who are the rebels and what do they want. >> reporter: they split from the army earlier this year. since then they have been pushing onto a key area along the border of ruwanda. the un said they pushed onto the

city using sophisticated equipment. the worry is that this war will pull in regional powers. erin? >> thank you very much. droning have been crisscrossing the skies over gaza for days. we got a tour behind those drones. >> reporter: before the booms and the blasts, a hum. droning were in the air space over gaza and even after the cease fire, they will rerain. days before the conflict broke out, cnn was on the ground to get an inside look. we visited the biggest

manufacturer. the company does $3.5 billion annual sales. a quarter of that go to the ministry of defense. >> we can see repositioned. uav's are planes without pilots and they are operated with the click of a mouse >> this is something that is better to be done by an unmanned capability. >> the flying is with a trackball and i'm commanding the direction and the uav will follow my command. when i want to land or take off a need to click a button >> a short drive away, the parts of the drone are crafted. >> it is a high tr-tech nolg.

>> that allows the drones to see far away. >> the main requirement is to see if you see a person, and he is holding something you want to know whether it is a gun or whether it is just a stick. >> cnn money looked at the latest that is yet to hit the market. a drone the size of a butterfly to alert soldiers on the ground. >> the drones are continuing. and they can hear them right? what are they doing? >> they are still there. they were there before and they will be there after. they have cameras and they said we can see your shoes from miles and miles away. and what they are doing now they are going to continue with the surveillance. that being said, this high-tech stuff is changing quickly.

they can carry out targeted attacks. we are going to see this more and more >> what about in terms of the money here. the united states is a huge supporters of israel's defense. the u.s. gives $3.1 billion in military aid annually. so israel can spend 25% of that to build up their own defense systems. america is really supporting israel build the technologies. if you look at they were building the drones, and they were responsible for building the iron drones. you heard obama say today, that he is going to support this more and more. >> thank you very much. and outrage over the location over paris hilton's new handbag

store. you know what, we think the outrage does not add up. more t, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪ ♪ ♪

is efficiently absorbed in small continuous amounts. citracal slow release continuously releases calcium plus d with efficient absorption in one daily dose. citracal slow release. with efficient absorption in one daily dose. energy is being produced to power our lives. while energy development comes with some risk, north america's natural gas producers are committed to safely and responsibly providing generations of cleaner-burning energy for our country, drilling thousands of feet below fresh water sources within self-contained well systems. and, using state-of-the-art monitoring technologies, heracticesel are safe and clean for our communities and the environment. we're america's natural gas. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me

what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally.

the internet has been buzzing about harris are hipari.

people were incensed that she would be opening a store there. she is opening the store 20 minutes from the mecca mall. it is full of everything that you could possibly want. we realized critics don't have a problem with the store. they have a problem with paris. she is a savvy business woman. in saudi the women have to wear black. handbags are a public sign of your style and status. that is how they show you are